Japan's government and ruling parties are considering removing limits on tax-free purchases by foreign visitors as part of a new system that will refund consumption tax upon departing the country.
Currently, foreign visitors can buy goods without paying consumption tax at designated stores in Japan. But it has been said that some people have abused the system by buying tax-free goods in bulk and reselling them for profit.
The government and ruling parties plan to require travelers to pay taxes upon purchase. Shoppers then apply for a refund when leaving Japan. Under their plan, the refunds will be made using devices that scan passports to be set up at all airports with international flights.
The new system is expected to scrap the upper limit of 500,000 yen, or about 3,300 dollars, on purchases of consumables
, such as cosmetics and food. The cap had been set to prevent resales.
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I went 1000 miles to the next gas station.
I went 10 miles to the next gas station.
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The new system also aims to abolish rules on special packaging to prove items have not been opened.
The government and ruling parties hope the new system will boost spending by inbound customers.
They expect it will take from one year to 18 months to carry out necessary revisions. They aim to have the system introduced as early as fiscal 2026.
They are considering including the details of the new system in the tax reform guidelines to be discussed next fiscal year.